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Local bourse moves lower in thin trade

Local bourse moves lower in thin trade

The local bourse moved lower in thin trade Saturday as many foreign investors were away for the weekend, dealers said.
Technical resistance ahead of the 8,200 points remained stiff after a recent strong showing with downward pressure focusing on the financial sector amid fears of exposure to loss-making industries, such as memory chip and flat panel makers, they said.
The market opened Saturday to make up for a lost trading session during the just concluded long holiday weekend
The weighted index ended down 29.60 points or 0.36 percent at 8,114.44, after moving between 8,087.20 and 8,134.90, on turnover of NT$89.52 billion (US$3.04 billion).
Share prices opened down 0.36 percent lower as investors took cues from a lackluster Wall Street overnight amid lingering concerns over the debt crisis in the eurozone, dealers said.
Selling increased to push the index down below 8,100 points during the session before bargain hunters turned active to help the broader market recoup part of its early losses by the end of session, they said.
“Due to the absence of many foreign institutional investors, today’s trade appeared quiet and boring as the index simply fluctuated in a narrow range throughout the session,” Hua Nan Securities analyst Stan Chang said.
Chang said after recent significant gains in share prices, many investors have become wary of a possible major technical pullback, while the market remained awash in high liquidity.
“On the back of ample funds, I do not think the market will suffer intolerable downward pressure,” Chang said. “It seemed that the market already has technical support at around 8,100 points in the short term.”
Chang said investors had better continue to pay attention to the financial crisis in Europe, although it seems that debt-ridden Greece will secure a new round of bailout money to avoid an immediate default.
“The debt crisis is far from over and it could come back to haunt the global financial markets any time soon,” he said.
The financial sector encountered the heaviest losses among the eight largest sectors of the market, finishing down 0.8 percent. Machinery and electronics fell 0.4 percent, the cement, and plastics and chemical sectors closed down 0.2 percent.
Bucking the downside of the broader market, foodstuffs rose 1.3 percent, paper and pulp stocks gained 1.2 percent, textiles added 0.4 percent and the construction sector closed up 0.3 percent.
Among the losing stocks, E. Sun Financial fell 2.17 percent to close at NT$15.75 and Mega Financial shed 1.14 percent to end at NT$21.60.
However, Genius Electronic Optical, one of Apple’s suppliers, closed up 7 percent, the maximum daily increase, to close at a six-month high of NT$340.00 on hopes that it will post record sales in the first quarter due to the popularity of the U.S. consumer electronics giant’s gadgets.


Updated : 2021-05-09 17:41 GMT+08:00